JONES DAY TALKS®: The EU’s ESG Framework: Decoding Sustainability Regulations (Podcast)

The European Commission has unveiled a comprehensive proposal to revise the EU Emissions Trading System Directive, introducing significant changes including alignment with 2040 climate targets, integration of carbon removal mechanisms, and establishment of a EUR100 billion Industrial Decarbonisation Bank. The proposal extends the ETS scope to additional aviation routes, smaller maritime vessels, and municipal waste incineration while reforming free allocation rules and the Market Stability Reserve to balanc

Advocate General Kokott has delivered a significant opinion recommending the annulment of provisions in the revised Urban Waste Water Treatment Directive that require pharmaceutical and cosmetics producers to finance 80% of quaternary wastewater treatment costs. While accepting the legitimacy of the polluter-pays principle, the AG concludes that the EU legislature failed to adequately substantiate the scientific basis for selecting these industries to bear such substantial financial burden.

The European Commission has proposed significant revisions to the EU Emissions Trading System that would expand carbon pricing requirements to certain international aviation routes while maintaining exemptions for flights to major markets like the U.S. and China. Beginning in 2029, the proposal would subject commercial departures from European Economic Area airports to destinations within 5,000 km of Frankfurt to EU ETS requirements, alongside all private business jet operations, while simultaneously streng

The European Union's new hazard classes for chemical substances are nearing the end of their transitional period, with a critical deadline of 1 November 2026 for substances already in the market. These classifications cover endocrine disruption, persistent and bioaccumulative properties, and mobile toxic characteristics that will fundamentally change how companies must classify, label, and register chemical substances under REACH and CLP regulations.

May 2026 – The European Union's Directive (EU) 2024/825, commonly referred to as the Green Transition Directive (the "Directive")...

The European Commission has introduced a comprehensive rating scheme for data centers and launched a consultation on minimum performance standards that could fundamentally reshape how EU facilities measure and report sustainability metrics. These initiatives establish electronic labels displaying key performance indicators like Power Usage Effectiveness and Water Usage Effectiveness, while exploring mandatory minimum standards that may require substantial operational changes and investment in cooling, heat-

The EU Packaging Regulation introduces sweeping reforms to packaging and packaging waste legislation across all Member States, establishing requirements for the entire lifecycle of packaging from labelling to environmental sustainability. With ambitious targets to reduce packaging waste per capita by 15% by 2040 and mandatory recyclability standards taking effect from 2030, businesses involved in product packaging face significant compliance obligations that will fundamentally reshape how they design, manuf

The European Commission has proposed updates to the EU's Classification, Labelling and Packaging Regulation to align with recent UN Globally Harmonized System revisions. These amendments introduce new classification criteria for chemicals under pressure, revised precautionary statements, non-animal testing methods for health hazards, and updated provisions for skin-sensitising substances and atmospheric hazards, with adoption planned for Q4 2026.

The European Commission has shelved plans for a comprehensive REACH revision, but technical amendments remain possible. One initiative still under consideration is the Mixture Assessment Factor (MAF), which would address combined chemical exposure risks—a recognized gap in current EU chemical safety regulations.

The European Union's Packaging and Packaging Waste Regulation brings sweeping changes to packaging standards across member states, replacing decades of flexible implementation with harmonized requirements. Companies placing packaging or packaged products on the EU market face new substance restrictions, including strict limits on heavy metals and PFAS in food-contact materials. Understanding these phased compliance deadlines and evolving chemical regulations is critical for manufacturers and importers opera

The Code is voluntary, but it will likely become an important reference point for demonstrating compliance with Article 50 of the AI Act.

The Ninth Circuit Court of Appeals vacated a preliminary injunction against Perplexity AI, determining that when an AI agent acts at a user's direction, it is the user—not the AI company—who "accesses" computer systems under federal and California computer fraud statutes. This landmark appellate decision addresses how existing computer-access laws apply to agentic artificial intelligence and has significant implications...

The European Commission has initiated infringement procedures against 20 EU Member States for failing to transpose the EmpCo Directive by the March 27, 2026 deadline. This directive aims to combat greenwashing by requiring substantiation of environmental claims and third-party certification for sustainability labels, with full implementation expected by September 27, 2026.

Mexico's comprehensive anti-money laundering framework has undergone a sweeping transformation through Acuerdo 115/2026, introducing mandatory risk-based methodologies, enhanced client due diligence protocols, and automated monitoring requirements. With implementation deadlines beginning March 1, 2027, obligated parties conducting vulnerable activities face compressed timelines to overhaul their compliance infrastructure while navigating heightened enforcement risks and stricter beneficial ownership thresho

China's Supreme People's Court has issued comprehensive judicial rules addressing artificial intelligence disputes, establishing frameworks for product liability, intellectual property rights, and data protection. These landmark opinions provide critical guidance for global companies navigating AI-related legal risks in China's evolving regulatory landscape.

The European Commission has proposed replacing the EU's three core procurement directives with a single, directly applicable Regulation that would fundamentally reshape how companies compete for public contracts across Member States. The reform introduces mandatory quality criteria thresholds, embeds ESG considerations as evaluation factors, and establishes new security and European-preference provisions that could restrict participation based on ownership, supply chain exposure, and strategic dependencies.

A federal court has struck down New York's Climate Change Superfund Act, which sought to recover $75 billion from fossil fuel companies based on historical emissions. The ruling found the Act preempted by the Clean Air Act, marking the first judicial decision on state climate superfund legislation and establishing that EPA's rescission of the endangerment finding does not alter preemption analysis.

The European Commission has adopted final Guidelines on exclusionary abuses of dominance under Article 102 TFEU, introducing a "workable effects approach" that narrows presumptions while expanding guidance on objective justifications and recognizing sustainability benefits as valid efficiencies for the first time. These Guidelines replace the 2008 Enforcement Priorities Guidance and are expected to significantly impact enforcement practices across EU Member States and beyond, particularly for digital market

France's Anti-Corruption Agency has imposed its first-ever monetary sanctions under the Sapin II Act, penalizing a company €350,000 and its president €60,000 for widespread compliance failures. The landmark decision establishes critical precedents for enforcement strategy, breach assessment timing, and personal executive liability in anti-corruption matters.

The user of defective goods benefi ts from several causes of action against the vendor or manufacturer.